Greece granted new bailout measures, Google targeted by competition regulators: Midday roundup

Debt-laden Greece has been granted a new wave of bailout money after European leaders organised a deal expected to reach 120 billion euros in size.

The program features billions in spending cuts, tax hikes and a privatisation program that the leaders say must be finalised in the coming days.

European Council president Herman Van Rompuy announced the deal in a statement, and Greek Prime Minister George Papandreou said the legislation would be put before parliament next week.

“Given the length, magnitude and nature of required reforms in Greece, national unity is a prerequisite for success,” the draft summit statement said.

Luxembourg Prime Minister Jean-Claude Juncker has indicated all conditions must be met for the package to proceed.

“If Greece does what it has to do, we will do what we have to do. This is not a threat. It’s just a confirmation that we’re continuing our efforts.”

The European Union leaders will meet again in early July to decide whether Greece has done enough to meet the bailout requirements.

Mirvac writes off apartment development

Property group Mirvac has written off the value of its apartment block in Tennyson Reach due to the impact from this year’s floods.

The company announced this morning it would set aside $80 million to cover potential losses, with 43 apartments still unsold in the development. 

“In assessing the carrying value of Tennyson Reach, Mirvac has amended the project’s forecast settlement and pricing profile for the unsold lots in stage two, Farringford. For undeveloped land, the group has deferred development and will seek to dispose of the site,” it said.

The company  announced total net tangible assets would be reduced to $1.58.

Shares flat after weak Wall Street lead

The Australian sharemarket opened flat this morning after a weak lead from Wall Street, where stocks remained flat after Greece announced a new bailout deal had been struck with European leaders.

The benchmark S&P/ASX200 index was down four points, or 0.1%, to 4495.9 at 12.10 AEST, while the Australian dollar remained flat at $US1.05c.

AMP shares lost 0.32% to $4.7, while Commonwealth Bank shares rose 0.81% to $50.90. NAB gained 0.74% to $26.46 as Westpac rose 1.2% to $31.18.

Google targeted by competition regulators

Internet giant Google may become the subject of a major investigation by the Federal Trade Commission, The Wall Street Journal has reported.

The publication says close sources say a team from the FTC will be sending civil subpoenas to Google “signalling the start of a wide-ranging formal antitrust investigation”.

The investigation is said to be centred on the fact Google is prioritising its own services in search results above others.

The publication states that a five-member commission will be sending Google demands for information within days and that separate companies will also be involved.

The report also claims it would be the most serious FTC investigation to date, and would focus on “fundamental issues relating to Google’s core search advertising business”.